British govt mulls bank tax for budget – report

LONDON, May 23 (BestGrowthStock) – Britain’s coalition government is
mulling introducing taxes on banks, possibly worth as much as 8
billion pounds ($11.50 billion), according to a report in the
Independent on Sunday newspaper.

The newspaper, quoting sources and officials, said the
measures could be introduced unilaterally in the
Conservative-Liberal Democrat coalition’s first budget on June
22 as part of plans to rein in a record budget deficit.

The G20 group of developed and emerging economies is due to
discuss proposals for bank taxes next month, but the
Conservatives have said they could be prepared to go it alone.

Conservative finance minister George Osborne will on Monday
announce how government departments will make six billion pounds
of savings this year as a signal of what is to come to bring
down borrowing and reassure debt-wary financial markets.

Osborne is then expected to outline the scale of further
cuts needed in his first budget, ahead of a detailed spending
review later in the year. Tax rises, such as a possible hike in
VAT sales tax, are also expected in the budget.

The Sunday Telegraph said the Queen’s Speech, which sets out
the new government’s legislative programme next week, will put
deficit reduction and economic growth top of its policy list.

In a draft of the speech seen by the newspaper, the
coalition also said it would seek a two-state solution to
resolve the Israel-Palestinian conflict, closer ties between
Pakistan and India and lasting stability in Afghanistan.

The draft also confirmed a pre-election Conservative pledge
that parliament and the public would have their say on any
future transfers of power to the European Union.

Penny Stocks
(Reporting by Matt Falloon; Editing by Janet Lawrence)

British govt mulls bank tax for budget – report